It’s been brought to my attention by my Patrons that some of my tiers are being taxed when they shouldn’t be. Whether VAT shows up on the listed tiers is also varying by user. Some see $1 (plus VAT) while others are seeing the VAT applied directly to the tier ($1.20).
When the new VAT system was introduced, I made sure to update my tiers so that I could manage the VAT settings manually, as per Patreon’s recommendations. I have four tiers, three of which are limited to General Support and Discord roles, with the Patrons receiving no benefits or products that are taxable. My highest tier is taxable and should have VAT applied to it, as I’m providing product downloads in the form of Ebooks.
So, the two things I’d like clarified are:
-Why is VAT being applied to tiers that have no taxable benefits? Wasn’t the point of having a General Support benefit that it wouldn’t be taxed?
-Why is the VAT showing up differently depending on who is viewing the page?
Thanks for bringing this to our attention @snekguy! I’ll surface this to the team to try and find an update or solution for you. Hang tight!
Hi again @snekguy. Here’s some context to your original questions:
The tax applied always depends on the patrons location. If a patron is in an EU country where we show tax inclusive price then we tax the entire pledge amount that the tier is. This is defined by the tax laws in that specific country. So what may not be taxable in some regions may be taxable in others, and would always be 100% taxable in the EU.
In terms of why it’s showing up differently, again this will depend on the patrons location. But we are currently testing 3 different ways of displaying tax inclusive pricing to find the most familiar/useful option for audiences in these territories.
Hope this helps!